The economy-related news cycle — both national and international — is set to go into overdrive next week. It will witness some of the most prominent events of the whole year.
What lies ahead?
On January 30th, the International Monetary Fund will release the latest update of its World Economic Outlook. The IMF releases two WEOs each year — one in April and another in October — and two updates to these WEOs — one in January and one in July. Readers might recall that by the end of 2022, there was a near consensus that the world economy would suffer a global recession in 2023, thanks to the Russia-Ukraine war and the ensuing inflationary spike. But the January 2023 update of…
Read More…
Category: RBI
RBI ‘mute spectator’, allowing banks to charge high interest rates: Allahabad HC
On the RBI’s responsibility as the banking regulator in the country, the court said, “Even if the benefit of doubt is given to the banks that they are free to charge the interest rate but it is duty of the RBI to see that the customers are not inconvenienced by huge rate of interest charged by the banks.” The petitioner had obtained Rs 9 lakh loan from the Standard Chartered Bank with a variable interest rate of 12.5 per cent per annum. After repaying off the entire amount, the petitioner requested a ‘no dues certificate’ and property document from the bank, which were promptly provided.
Read More…
Source: https://www.deccanherald.com/india/up-hc-banks-2861300
Monetary Policy Of India: From Types, Tools And Composition, Details You Need To Know
Learn all about India’s monetary policy: types, latest updates, and the differences between monetary and fiscal policy
Monetary policy helps shape a country’s economic landscape by influencing key factors such as inflation, economic growth, and employment. Through tools like interest rate adjustments and money supply control, the Reserve Bank of India seeks to maintain price stability, ensuring that inflation remains at a sustainable level. Central banks also impact borrowing costs, consumer spending, and business investments by managing interest rates.
Effective monetary policy contributes to economic stability,…
Read More…
Source: https://www.forbesindia.com/amp/article/explainers/monetary-policy-india/91017/1
RBI revises Eligibility Norms for UCBs
In a recent press release, the Reserve Bank of India (RBI) announced the revision of eligibility norms for the inclusion of urban co-operative banks in the second schedule of the Reserve Bank of India Act, 1934.
The move aims to bring urban co-operative banks within the purview of an updated regulatory framework.
To be considered, these banks must maintain a capital to risk weighted asset ratio of at least 3% and should be devoid of major regulatory and supervisory concerns, as per the release.
Furthermore, financially sound and well-managed licensed tier 3 and tier 4 primary (urban) co-operative banks meeting specified criteria will be eligible for inclusion.
Source: https://www.indiancooperative.com/co-op-news-snippets/rbi-revises-eligibility-norms-for-ucbs/amp/
Behind high investment rate: Strong corporate profitability doesn’t guarantee an investment boom – Opinion News
Last week, an article on the state of the economy by the Reserve Bank of India (RBI) staff acknowledged “a shift from consumption to investment,” and said that this underpinned the upside surprise in the National Statistical Office’s first advance estimates of the national income (real GDP growth of 7.3%) for FY24.
The authors including deputy governor Michael Debabrata Patra talked about the government’s thrust on capex “starting” to crowd-in private investment, and the “ebullience in residential housing.” The rate of real fixed investment is at a historic high (of nearly 35%) in 2023-24 and this “augurs well for enhancing the productive capacity of the economy and…
Read More…
sovereign gold bonds, sovereign gold bond scheme, sovereign gold bonds 2024, sovereign gold bonds 2023 24 series iii, sovereign gold bonds 2023 december, sovereign gold bonds 2023 december, sovereign gold bonds 2023 price
Updated Jan 22, 2024, 06:00 PM ISTReserve Bank of India (RBI) has fixed the subscription price as of now at the time of publishing the article. Usually, the price will be announced two weeks ahead of the subscription date. Sovereign Gold Bond: RBI Fixes Next Issue Date of SGB Scheme; Step By Step Guide To Buy Online (image source: iStock)Sovereign Gold Bond (SGB) Scheme 2023-24 December Series IV Issue Price, I, Dates & Returns: Sovereign Gold Bond (SGB) Scheme 2023-24 – Series IV will be opened for subscription on February 12, 2024. The sovereign gold bond scheme was launched in November 2015 to reduce the demand for physical gold and shift a part of the domestic savings — used for the…
Read More…
RBI report paints rosy fiscal picture
KOCHI: Even as the Left front government in Kerala faces increased scrutiny of its monetary management amid the current financial challenges, recent data indicates the state improved its performance over the last few years on key metrics linked to growth and fiscal responsibility. The RBI’s ‘State Finances: A Study of Budgets of 2023-24’ report highlights that the contribution of state’s own tax revenue (SOTR) to Kerala’s overall tax revenue increased to 78.7% for the post-Covid period of 2021-23. By comparison, the average for all states was 65.4%.According to the report, SOTR accounted for 74.5% of Kerala’s total tax revenue during the pre-GST period of 2015-17. In the…
Read More…
ICRA pegged the target for dividends, and profits at Rs 1.2 tn for FY25- Republic World
Updated January 21st, 2024 at 21:04 ISTThe robust and more than-budgeted dividend was largely driven by higher RBI surplus transfer. | Image:PexelsDividends from CPSEs: Two things that have given comfort to the government on the fiscal front are direct tax collection, more than budgeted dividends from RBI and Public Sector Enterprises. Going ahead in FY25, ICRA expects robust dividends from RBI and CPSEs. Overall, ICRA has placed the target for dividends and profits at a healthy Rs 1.2 trillion for FY25. However, this would be less than Rs 1.4-1.5 trillion expected for FY24. The robust and more than-budgeted dividend was largely driven by higher RBI surplus transfer. “The dividends…
Read More…
Alternate investment fund provisions hit profits of private banks
The bottom lines of several private sector banks have taken a hit following the recent guidelines released by the Reserve Bank of India (RBI) on alternate investment fund (AIF) investments.
Last month, the RBI announced that regulated entities, such as banks, non-bank lenders, and home financiers, cannot invest in AIFs that have directly or indirectly invested in companies that have borrowed money from the lenders.
In case an entity had already made such an investment, they must liquidate the investment or make 100 per cent provision, RBI had said.
HDFC Bank – the largest private sector lender, along with ICICI Bank and KotakFirst Published: Jan 21 2024 | 6:31 PM…
Read More…
No respite for Saibaba Janata Sah Bank & National Co-op Bank
In a recent development, the Reserve Bank of India (RBI) has announced the extension of Directions on two urban cooperative banks, Saibaba Janata Sahakari Bank Limited in Latur, Maharashtra, and The National Co-operative Bank Ltd. in Bangalore. This decision comes a day after the RBI levied fines on five Urban Cooperative Banks (UCBs).
The RBI extended the period of operation of the Directive on Saibaba Janata Sahakari Bank by three months beyond the close of business on January 22, 2024. According to a released statement, the RBI expressed satisfaction that the extension is deemed necessary in the public interest.
“The Reserve Bank of India is satisfied that in the public interest,…
Read More…